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Sanctions and export controls are federal legal regimes that govern how goods, technology, services, and funds move across national borders and who U.S. persons can lawfully deal with. Although Braintree is a municipal jurisdiction in Massachusetts, the laws that matter for sanctions and export controls are primarily federal. These laws are designed to protect national security, foreign policy, and economic interests by restricting exports of certain items and by prohibiting business with designated countries, entities, or individuals.
Practically, if you are in Braintree and you import, export, re-export, broker, finance, or otherwise facilitate international transactions - or if you employ foreign nationals, ship controlled items, or provide technical assistance across borders - you will be subject to these federal rules. Local businesses, nonprofit organizations, universities, and individuals all need to be aware of how federal sanctions and export control rules may affect day-to-day transactions.
Sanctions and export control law is complex and can have severe civil and criminal penalties for noncompliance. A lawyer with experience in this area can help in many situations, including:
- Determining whether an item, software, or technology is controlled under the Export Administration Regulations - EAR or under the International Traffic in Arms Regulations - ITAR.
- Identifying whether a counterparty is a sanctioned or restricted party and advising on screening processes.
- Applying for and preparing export license applications and authorizations from the Department of Commerce, Department of State, or Department of the Treasury.
- Responding to government inquiries, subpoenas, administrative investigations, or criminal investigations initiated by agencies such as OFAC, BIS, DDTC, CBP, or DOJ.
- Conducting internal investigations after a potential violation or suspected export control breach and deciding whether to submit a voluntary disclosure.
- Drafting and implementing corporate compliance programs, trade compliance policies, and record-keeping procedures that fit the size and risk profile of your Braintree business.
- Advising on contractual protections - such as representations, warranties, and indemnities - when entering international contracts that may implicate sanctions or export controls.
While federal law governs sanctions and export controls, several local and state considerations in Braintree and Massachusetts may be relevant:
- State-level procurement and investment rules. Massachusetts and some municipalities may have procurement rules or investment policies that restrict doing business with certain foreign entities or countries. If you contract with the town of Braintree or a state agency, those procurement rules may impose additional compliance steps.
- Licensing and registration for defense-related businesses. If a local company in Braintree deals in defense articles or services, the company may need to be registered and compliant with federal registration requirements. Local zoning and business licensing can also affect where controlled activities are performed.
- Cooperation with federal enforcement. Local law enforcement and state agencies sometimes cooperate with federal authorities on investigations that touch on export control or sanctions issues. That can affect how investigations are carried out locally.
- Local business support services. Braintree businesses can access state and regional trade assistance programs that provide compliance guidance, training, and connections to federal resources. These local resources can be helpful in understanding how federal rules apply in practice.
Sanctions are restrictions targeting countries, entities, or individuals and often focus on financial transactions, trade embargoes, or asset-blocking measures. Export controls regulate the transfer of certain goods, software, and technical data for national security or foreign policy reasons. There is overlap - for example, a transaction may be both controlled for export reasons and involve a sanctioned party.
They apply to both. U.S. persons - which generally include U.S. citizens, permanent residents, and entities organized in the United States - must comply regardless of whether they are individuals or businesses. That means individual residents of Braintree need to follow the rules when they ship items, provide technical assistance, or handle funds that cross borders.
Determining control requires classification. The Department of Commerce administers the EAR and uses the Commerce Control List to classify most commercial items. The Department of State administers ITAR and controls defense articles and services on the U.S. Munitions List. Classification can be technical and fact-specific - a lawyer or a qualified trade compliance specialist can help you analyze product specifications and advise whether to request an official classification from the relevant agency.
The Specially Designated Nationals - SDN - list is maintained by the Office of Foreign Assets Control. It names individuals, entities, and vessels with whom U.S. persons are generally prohibited from dealing. Engaging in transactions with SDNs can expose a person or company to severe penalties, including fines and criminal charges. Routine screening against this list is a fundamental compliance practice.
Sometimes federal agencies issue licenses authorizing otherwise prohibited transactions. For sanctions, OFAC issues licenses in narrow circumstances. For export controls, the Department of Commerce or Department of State may issue licenses for specific exports. Licensing is typically case-by-case and can be time-consuming and uncertain, so early counsel is advisable.
Penalties can be civil or criminal. Civil fines can be significant and calculated per violation. Criminal penalties can include steep fines and potential imprisonment. In addition, violations can lead to reputational harm, loss of export privileges, and debarment from government contracts.
If you are contacted by a federal agency about a potential violation, preserve relevant documents and communications and seek counsel immediately. A lawyer can advise on how to respond, whether to provide information voluntarily, and whether to negotiate a voluntary self-disclosure, which in some cases can reduce penalties.
A practical compliance program should be risk-based and proportionate to your operations. Key elements include senior management commitment, written policies and procedures, training for staff, screening of customers and suppliers, internal controls for exports and payments, record-keeping, and periodic audits. A lawyer can tailor a program to your specific risks and industry.
Yes. Export controls can apply to technical data, software, and services that are transmitted electronically or verbally across borders or to foreign persons within the United States. There are specific rules about deemed exports when foreign nationals in the United States receive access to controlled technology.
Look for attorneys who list sanctions, export controls, international trade, and government investigations as practice areas. Local bar associations, state attorney general resources, and nearby Boston law firms often have practitioners with relevant experience. Initial consultations can help you assess whether a lawyer has the technical knowledge and enforcement experience needed for your matter.
Federal agencies and local organizations can provide guidance and assistance:
- Department of the Treasury - Office of Foreign Assets Control (OFAC) for sanctions compliance and licensing.
- Department of Commerce - Bureau of Industry and Security (BIS) for export control classification and licensing under the EAR.
- Department of State - Directorate of Defense Trade Controls (DDTC) for ITAR matters and defense trade registration.
- U.S. Customs and Border Protection (CBP) for import and export enforcement at ports and borders.
- Department of Justice (DOJ) for criminal enforcement and guidance on government investigations.
- Local Massachusetts resources such as state trade offices, small business development centers, and the Massachusetts Attorney General's Office for consumer and business regulatory matters.
- Local bar associations and law firm directories to find qualified counsel experienced in sanctions, export controls, and international trade.
If you believe you need legal help with sanctions or export controls in Braintree, consider the following action plan:
- Assess your risk. Identify which products, technologies, services, or transactions may be subject to controls, and which foreign parties or destinations you deal with.
- Gather documentation. Collect contracts, invoices, shipping records, technical specifications, export documentation, and communications with foreign parties.
- Screen your counterparties. Implement or run screening against government lists, including OFAC SDNs and denied-party lists maintained by federal agencies.
- Consult a specialist. Schedule a consultation with an attorney experienced in sanctions and export controls to get tailored advice on classification, licensing, compliance programs, and potential exposure.
- Consider voluntary disclosure if appropriate. If you discover a potential violation, your lawyer can advise whether a voluntary self-disclosure to the relevant agency may mitigate penalties.
- Implement or update compliance policies. Work with counsel to draft clear policies, training, and record-keeping that match your business size and risk profile.
Remember, this guide provides general information and is not a substitute for legal advice. For issues specific to your situation, particularly those involving government investigations or potential criminal exposure, consult a qualified sanctions and export controls attorney promptly.
